Investing
Futures rise as bank fears ebb, focus shifts to key inflation data
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 29, 2023. REUTERS/Brendan McDermid
(Reuters) – U.S. stock index futures rose on Thursday as easing fears of a banking crisis shifted the focus back to key consumer spending data due later in the week that could shape expectations for the Federal Reserve’s future policy path.
The banking turmoil, which started earlier in March with the collapse of two regional U.S. lenders, sparked concerns about a broader financial crisis and led to a dramatic shift in monetary policy expectations from the Fed.
Investors will now watch out for February data on the personal consumption expenditures (PCE) price index – the Fed’s preferred inflation gauge – that is due on Friday for further clues on the central bank’s rate-hike trajectory. January figures showed a sharp acceleration in consumer spending.
Traders’ bets are still tilted towards a pause in rate hikes in May, with rate cuts expected soon after that.
Wall Street’s main indexes closed higher on Wednesday as upbeat outlooks from Micron Technology (NASDAQ:) and other companies allayed concerns about the health of the U.S. economy.
Major tech and growth names such as Microsoft (NASDAQ:), Tesla (NASDAQ:) and Amazon.com (NASDAQ:), which were among the biggest boosts to equities in the previous session, rose between 0.2% and 0.6% before the bell.
Final estimates for quarterly U.S. economic growth are expected to confirm gross domestic product likely remained unchanged at 2.7% in the fourth quarter. The data is due at 8:30 am ET.
A separate report due at the same time is expected to show jobless claims rose last week, compared with the comparable period before that, hinting at some softening in the labor market.
Fed officials, including Boston Fed President Susan Collins and Minneapolis Fed President Neel Kashkari, are also due to speak later in the day, with investors expected to parse their comments for clues on the central bank’s monetary policy plans following the banking crisis.
At 5:03 a.m. ET, were up 145 points, or 0.44%, were up 15.75 points, or 0.39%, and were up 32.5 points, or 0.25%.
Among other stocks, Faraday Future Intelligent Electric Inc jumped 22.9% premarket after the company said it has started production of its first luxury electric car after a months-long delay.
Read the full article here
-
Side Hustles5 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Make Money6 days ago
15 Jobs That Will Shrink the Fastest Over the Next Decade
-
Side Hustles6 days ago
How to Maximize Your Profits With This Annual 8-Step Checklist
-
Passive Income6 days ago
Why Email Marketing Is Still Your Business’s Most Powerful Tool
-
Side Hustles6 days ago
Want to Start a Business? Consider Buying One Instead — Here’s Why.
-
Investing6 days ago
Netherlands stocks lower at close of trade; AEX down 0.80% By Investing.com
-
Investing5 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com
-
Investing5 days ago
How I Transformed My Business by Letting Go of Low-Value Tasks